- What's going on, y'all?
Welcome back to the channel Wealth Hacker Live,
I'm your gracious host, Jeff Rose,
and we are gonna go ahead and dive right into this one.
Not a lot of updates going on with the
economic stimulus checks, but there was some videos,
there were some headlines that I saw
that I could definitely see that would cause
some confusion.
And some of the headlines that I saw
were talking about a $4000 stimulus check,
or a $4000 stimulus package,
and then anytime you see $2000, $4000, $5000,
even one headline I shared, I think it was last week,
talked about $10000 a month.
I mean, that's gonna get you all very excited.
It would get me very excited,
and I just wanted to address like
what exactly are they talking about?
Well, not to go ahead and just kinda spoil it for you,
but there is no $4000 stimulus check.
There's not even a $4000 stimulus check proposal.
There is a $4000 thing, which I'll share right now,
but no, it is no check.
This is not being debated in congress right now,
this is not a bill being proposed
by another representative or a senator.
All this is is a potential tax credit.
Correct, a potential tax credit.
And there are a ton of articles out there.
Here's one that I found on Forbes,
and I'll link to this article in the description,
in the show notes so you can check this out.
But you can actually clearly read the headline here.
Second stimulus checks versus $4000 travel credit.
So it doesn't say check, it doesn't say debit card,
it doesn't say discount.
It says a $4000 travel tax credit.
Okay well that sounds kind of fun.
Kinda, but let's see how thing works.
You gotta kinda scroll to the bottom
so it talks about what this $4000 tax credit it.
If I can get myself out of the way here.
I'll just read it for you.
According to the U.S. Hotel Association,
a $4000 travel tax credit could give you
up to $4000 in tax credits for domestic vacation expenses
at hotels, restaurants, theme parks,
and other travel related businesses through the end of 2021.
And so Trump talked about some more here.
Once again, you can check out this article.
So what is this looking to do?
We're looking to help out with the travel,
restaurant, and tourist industry.
Obviously these are the industries that
didn't really get a lot of benefit,
actually got zero benefit from the first stimulus check
from the CARES act because nobody
was spending that $1200 on travel, on airfare, on hotels,
on theme parks, 'cause most of the stuff was closed.
Not to mention the fact that everybody's in lockdown mode,
so there's nowhere to go,
and most times you couldn't go anywhere.
So this is meant to encourage recipients
to spend money to boost the economy,
creates the demand for more jobs,
which can reduce unemployment.
Okay, yeah, true, kinda.
And the cons, this would be a tax credit.
This is a big one.
Let me see if I can go ahead and highlight
this for you real quick.
This would be a tax credit, not direct money.
That's the big one.
So this is not a check,
this is not the government's gonna send you
a $4000 check and you have to use it
towards travel, restaurants, or tourism.
Like no, that's not how it works.
Basically what it is, it's a credit.
So you'd have to go spend your own money,
and then at the end of the year,
you'd have to saddle up and say,
hey, here's my receipts, here's what I spent,
here's where I went, so go ahead and knock that off
how much taxes I'm going to owe at the end of the year.
And for many people, they don't have the ability to do that
because they don't have the $4000 to spend.
And it goes on and on about which one is more likely,
the stimulus check, or a travel tax credit.
And to me, we're trying to bait over nothing.
And so even if this does pass, like whoopdy-freaking-doo.
That's what I have to say.
A $4000 travel tax credit, especially,
and I don't know when this was proposed,
I think it said back in May.
And right now we're dealing with the fact,
we're seeing cases of COVID-19 going back up,
we're seeing different cities surge.
I know in Nashville, they halted going into phase three,
we're stuck at phase two.
And I know in our county, I think there hasn't been much
increase on cases,
but the county just north of us
has definitely seen a surge,
and it's almost like night and day.
'Cause like where we live right now,
we are not required to wear masks
when we go out to restaurants,
which we haven't even been to a restaurant yet,
grocery stores, but my wife just,
she had a doctor's appointment I think it was last week,
she had to travel to the county north of us,
and they are required to wear masks there.
So like that's just like a line between
the two different counties on
which ones are wearing masks, which ones aren't,
and I'm sure you're probably experiencing something similar.
Whether you live somewhere that's required to wear a mask,
or it's recommended, but the whole point is that, right now,
people still aren't,
I mean, okay, maybe the one percent are traveling.
Maybe there are some people that have the ability to get out
but even for those that do get away,
where are you gonna go?
Because if you go to someplace that's quarantined,
or they're required to wear masks,
or they're checking you before you're going in state,
I don't care if you've got a $4000 travel tax credit,
you're not gonna be able to use it.
So that's what this is.
There is no $4000 stimulus check.
There is no $4000 stimulus proposal.
All there is a potential $4000 tax credit
towards travel and travel only.
That's it.
I know, it's not exciting, I'm sorry.
I just feel like I needed to share that
in case there's any confusion on what that is.
So there's no new bill, there is no new proposal,
this is not a part of the HEROES Act.
So do not get your hopes up that this is
a $4000 check or a recurring payment coming your way.
Even if this does come your way,
chances are most people won't even be able to use it
because they don't have the financial means to do so,
and probably don't even want to even
travel outside their home
just because your home is your safety area.
You can control this.
You go travel somewhere else, go to Disney World
where half the people are getting infected,
like you wanna do that, I guess it's on you.
I'll let you decide.
All right y'all, that's all I got for today.
This is Jeff Rose reminding you that
it's your money, it's your life,
and only you can make it awesome.
Until next time, peace.